Connect with us

Hi, what are you looking for?

Europe

Italy backs out of race for bailout-fund chief ahead of key vote

Marco Buti, Italy’s candidate to lead the European Stability Mechanism, has withdrawn from the race, three officials and diplomats confirmed to POLITICO on Monday.

That departure leaves Portugal’s João Leão and Luxembourg’s Pierre Gramegna standing ahead of a vote to appoint the new head of the eurozone bailout fund later this afternoon, on the margins of a euro area finance minsters’ meeting in Brussels.

Any winning candidate needs the support of 80 percent of a vote weighted according to the capital provided by member countries to the fund. Germany and France both hold over 20 percent of the ESM’s capital, which effectively gives them a veto.

Rome chose to back Leāo, as does Paris, according to diplomats, which would give the Portuguese candidate over 50 percent of the vote. But Berlin backs Gramegna, and it’s unclear if Finance Minister Christian Lindner will use his veto to block Leāo’s appointment.

The fund’s current Managing Director Klaus Regling will step down in October, but earlier attempts at appointing a new head had failed due to Italy’s refusal to back down after Buti gathered the least support for his candidacy.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Europe

Press play to listen to this article Voiced by artificial intelligence. For many officials, it’s a topic they won’t touch. When pressed, politicians give...

Industrial Policy

FRANKFURT — Just when it looked like the tide might be turning in favor of the EU pooling its resources to stave off crises...

Energy

Press play to listen to this article Voiced by artificial intelligence. China is in the driver’s seat of negotiations to deliver a global deal...

Energy

Press play to listen to this article Voiced by artificial intelligence. The only degrees EU officials used to care about were those handed out...

Foreign Policy

Sweden’s policy smorgasbord is already groaning with some chewy (and even unpalatable) items — but the Commission keeps adding more to its plate. By this...

Europe

The Hungarian government Tuesday blocked agreement on an €18 billion aid package for Ukraine, forcing the European Commission and the other EU countries to...

Europe

Matteo Salvini was in Brussels Monday touting his pet project: The world’s longest suspension bridge, connecting Sicily with mainland Italy.  The bridge is included...

Europe

The EU’s largest countries are extending a helping hand to the Hungarian government in its tussle with Brussels over rule-of-law breaches. France and Germany,...